Awhile back I received a review copy of Larry Winget’s “You’re Broke Because You Want to Be,” and I finally had time to sit down and start paging through it. In case you’re not familiar with him, Winget is a personal finance author and TV personality with what can only be described as a ‘no holds barred’ personality.
Anyway, in reading through the book, I was struck by the following passage:
The only thing kids know about money is what you teach them. You set the example. Don’t expect your kids to learn how to spend their money wisely if they have watched you piss yours away on stupid stuff. Your choices will become their choices. Every dime you spend shows them how to spend their money.
I couldn’t agree with this more. While many people (ourselves included) often go to great lengths to teach their kids about money by paying them an allowance, it’s easy to forget that kids primarily learn by example. If you set a good example for your kids and they’ll learn the right lessons. If you don’t… Well… They won’t.